The meme coin, Dogecoin has been on a rollercoaster ride since late October and this ride is showing no signs of stopping as prices plunged again at the weekend. The risk into late November and for year-end are for further bearish price pressures and keep price forecasts still lower.
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Dogecoin Plunges Again
The bellwether meme coin, Dogecoin (DOGE), has plunged back lower in price over the past weekend as crypto contagion fears in the wake of the collapse of the major cryptocurrency exchange, FTX, have again gripped the world of decentralised finance.
Two weeks of relatively stable consolidation for Dogecoin, alongside many other altcoins, could have been viewed as a basing effort, but from a technical analysis perspective, the damage wrought by the early November plunge after the collapse of crypto exchange giant, FTX, has continued to put negative pressures on DOGE.
The basing pattern built from the June bear market low at 0.0492 and the surging rally in late October assisted by Elon Musk’s takeover of Twitter had indicated a more sustainable recovery phase into late 2022 and beyond. The early November acceleration back lower, however, has completely eradicated the bullishness from late October, and also questioned the solidity of the intermediate-term bottoming pattern from the summer.
The bearish break over the past 24-48 hours has renewed negative forces from the aggressive, early November sell off, rejecting any positive recovery hopes for the short-term and shifted the focus to the downside again for late November and into early December.
Downside Price Risks for Dogecoin
We see immediate risk for a challenge this week to the November sell off low at 0.0706. Below here would see little in the way of support down to the October and September lows gathered in the 0.0559/0.0551 area. The threat into December and year-end would potentially be for a more negative shift to challenge the bar market lows from the summer down at 0.0498/0.0492.
Upside Recovery Challenges
Only back above 0.0858 would ease the immediate bearish risk, with a more positive bias needing a recovery back above the November rebound peak at 0.0948. This could then open risk back up towards the 0.1100/0.1200 area.
